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Vector Capital sells Saba Software for almost $1.3bn

Vector Capital has sold Saba Software to Cornerstone OnDemand Inc for about $1.295 billion.

Vector Capital has sold Saba Software to Cornerstone OnDemand Inc for about $1.295 billion. William Blair & Company acted as financial advisor to Saba on the deal while Paul Hastings LLP served as legal advisor. Saba Software is a provider of learning management software.


San Francisco – April 22, 2020 – Vector Capital, a leading private equity firm specializing in transformational investments in established technology businesses, today announced the successful sale of Saba Software, a leading provider of cloud-based talent management software, to Cornerstone OnDemand, Inc., (Nasdaq: CSOD) for approximately $1.295 billion.

Founded in 1997 as a pioneer in learning management software, Saba Software enables human resources departments to effectively manage all aspects of acquiring, developing, and retaining their talent through a single cloud-based software. Saba’s HR suite covers the entire lifecycle of an employee from recruiting, training, reviews, performance management, and succession planning.

Vector Capital initially invested in the already-delisted Saba through its Credit Strategy in 2013, which culminated in a take private in 2015 as the company faced SEC-imposed deregistration. Since acquiring Saba, Vector Capital worked closely with Saba’s management team to develop and execute a long-term strategic plan focused on expanding Saba’s product offering and increasing recurring revenue. Specifically, Saba completed two transformative acquisitions – Halogen in 2017 and Lumesse in 2018 – which added performance and recruiting capabilities to Saba’s market leading learning platform and more than doubled its recurring SaaS revenue. Additionally, Saba’s financial performance and scale materially improved with significant increases in overall revenue and EBITDA under Vector Capital’s ownership.

David Fishman, a Managing Director at Vector Capital, said, “Saba is both a terrific outcome and an excellent example of Vector’s strategy at work. We started with a distressed credit investment, which ultimately led to a full buyout. We retained a terrific product team, brought in some of our best executives, and expanded Saba’s platform and geographic breadth with two material acquisitions. We thank CEO Phil Saunders, CFO Pete Low, CTO Srini Ogireddy, and the entire Saba team for their tremendous contributions and partnership.”

Andy Fishman, a Managing Director at Vector Capital, said, “Over the course of our ownership, we oversaw Saba’s transformation from a US-focused, on-premise software business to a global, cloud-based system. We achieved these milestones by identifying strategic acquisitions that added performance management and recruiting capabilities and successfully recruiting and retaining world-class management and product teams.”

Phil Saunders, President and CEO of Saba, added, “Vector Capital has been a terrific partner during a critical period of growth for Saba. I am proud to have worked alongside their talented team for over 13 years across multiple companies. We are grateful and proud of what we have achieved with their support and look forward to our next chapter with Cornerstone.”

Michael Slaunwhite, Saba’s Chairman and Halogen’s Co-Founder, commented, “I have worked alongside Vector Capital since Saba completed its acquisition of Halogen back in 2017. After rolling the majority of my Halogen holdings to become a meaningful equity holder in the combined company, I experienced first-hand the significant value and commitment to excellence they bring to their portfolio companies. Their insights and support were invaluable as we successfully united Halogen’s vision with Saba’s.”

William Blair & Company, L.L.C. acted as financial advisor to Saba in this transaction, and Paul Hastings LLP acted as its legal advisor.

About Vector Capital
Vector Capital is a leading global private equity firm specializing in transformational investments in established technology businesses. With approximately $4 billion of capital under management, Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of businesses and enhance value for employees, customers, and all stakeholders. For more information, visit